Music to Your Ears: Get Details of the boAt IPO Here

5 August 2022
2 mins read
Music to Your Ears: Get Details of the boAt IPO Here

Imagine Marketing, boAt brand’s parent company has filed its DRHP (draft red herrings prospectus) papers on Thursday 27 January 2022. The IPO or initial public offering is for Rs. 2,000 crores. To know more details of the earphone and smartwatches brand along with the IPO, find details here. Read on!

Key Details of Imagine Marketing’s IPO

  • This IPO will consist of both a fresh issue of shares as well as an offer of sale.

  • The new issue of shares will be up to Rs. 900 crores.

  • The offer of sale will be up to Rs. 1,100 crores.

  • In this IPO, South Lake Investment will sell shares up to Rs. 800 crores.

  • This IPO’s objective is to repay or prepay the debt this company has incurred. In that regard Rs. 700 crores will be used to repay or prepay debts, while the remainder will be used for general corporate purposes. Since 31 December 2021, this company has had outstanding debts of Rs. 721 crores.

  • Moreover, this company is expecting to seek a valuation of $1.5-2 billion.

Previously, in April 2021, it was valued at Rs. 2,200 crores after it had raised money from Qualcomm Ventures to the tune of Rs. 50 crores.

Business Model of Imagine Marketing

This company is a direct-to-customer company owning many digital-first brands. They sell primarily through digital channels and online marketplaces. In terms of volume, figures have ranked this company first in the hearables segment and second in the wearables category.

The smartwatch brand of this company had a 20% market share in the September quarter of 2021 due to its popularity.

Bottom Line

This company is hugely popular in the hearables segment and has high brand awareness. Moreover, revenues have grown significantly to Rs. 1,313 crores in FY 2021. Moreover, the company is focused on building an asset-light D2C company.

Frequently Asked Questions

  1. Who are the book running lead managers to this issue?

Book running lead managers to this issue are:

  • Axis Capital

  • Bofa Securities

  • Credit Suisse Securities

  • ICICI Securities

  1. What is the net profit of boAt?

The net profit of boAt is Rs. 78 crores.

  1. What is the revenue of boAt?

The revenue of boAt as of 31 March 2021 is Rs. 1,500 crores.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.